Pan African Resources (LSE:PAF) leads the pack, with a market-crushing return of 797%. Next comes a huge 348% gain from TBC Bank Group (LSE:TBCG), while Goodwin (LSE:GDWN) narrowly gets bronze with 313%. Note, none of these returns include dividends!

So, here we have an African-focused gold miner, an emerging markets bank (Georgia’s TBC), and family-run engineer Goodwin. An honourable mention should go to construction group Galliford Try, which has also returned around 312% over five years.

What has driven these extraordinary gains?

Benefiting from big investing trends

Pan African’s eye-popping gain can be summed up with one word: gold.

As a gold miner, its profits are highly leveraged to the price of the yellow metal. And even after the recent pullback, gold is still up by roughly 175% in five years.

When gold prices soar, a miner’s profits will often grow much faster than the price of the metal itself because extraction costs stay relatively fixed. As such, Pan African’s net profit has exploded from $44m in 2020 to an expected $470m this fiscal year (ending June). Wow!

Meanwhile, Goodwin’s benefitting from the defence and nuclear renaissance. It makes high-integrity castings, particularly those that don’t melt under extremely high temperatures. Not many companies in the world specialise in these.  

Bottom-line profits have grown at an annualised rate of 25% since 2020. And Goodwin investors have enjoyed lots of dividends along the way. 

Is either still worth considering?

The last time I wrote about Goodwin (in October), I concluded that the stock looked too pricey. Back then, the price-to-earnings (P/E) ratio was 60 while the dividend yield was just 1.4%.

Since then though, the Goodwin share price has crashed almost 40%. And now we have a P/E ratio of 24 and a 2.2% yield that may be worth considering.

Much of this loss came in a single day in March when Goodwin revealed it had lost two major tenders in its Mechanical Engineering division (worth about £60m). And it has delayed the dispatch of valves to some customers due to the Iran war.

Taking a longer-term view, however, it should have plenty of growth options across the European nuclear, aerospace and defence sectors. After all, it has finally dawned on Europe that these things are actually rather important in a fragmenting international order.

Pan African’s fate will, of course, be dictated by the gold price. Personally, I prefer Fresnillo from the FTSE 100 as it mines silver too. But both stocks could tank if gold does.

Ultra-cheap stock

Turning to TBC, I’m more bullish on this bank stock. It’s trading at just 5.7 times forward earnings, while offering a 6.2% forecast dividend yield.

Granted, any economic downturn in Georgia is a risk, while the political scene there is still on edge. But this economy is tipped to grow strongly for years, as is Uzbekistan’s (TBC’s second market).

The lender is extremely profitable, benefitting from its duopolistic position in Georgia and an increasingly digital-first approach. Given the extremely low valuation, strong growth potential, and generous starting dividend yield, I think TBC stock is still worth looking at today.

The post Meet the skyrocketing FTSE 250 stocks up by more than 300% in five years! appeared first on The Motley Fool UK.

Yet the FTSE 250 index of growth shares isn’t just packed with companies that look cheap based on expected earnings. Many also have huge dividend yields that would put most FTSE 100 income-paying shares to shame.

Here, I’ll reveal one of my favourites, and explain why it’s on my own watchlist for when I next have cash to invest.

Emerging markets star

Emerging market companies like TBC Bank (LSE:TBCG) face an increasing threat following conflict in the Middle East. Why? These regions depend more heavily on non-bank investment for growth. And with interest rates tipped to rise, funding from institutional investors could dry up.

That’s not just my opinion. The International Monetary Fund (IMF) made this warning on Tuesday (7 April), noting that “portfolio flows to emerging markets tend to be more volatile than bank flows and are increasingly sensitive to global risk conditions“. For TBC, which provides banking services in Georgia and to a lesser extent Uzbekistan, this poses an enormous threat.

Higher interest rates in Georgia would be good for TBC’s margins. However, their impact on local loan impairments and banking product demand — combined with the possibility of that sinking overseas investment — could create a huge net negative for earnings.

Yet from an investment perspective, I feel these problems are more than baked into the bank’s low valuation. Right now it trades on a forward price-to-earnings (P/E) ratio of 5.9 times. With a 6% dividend yield for 2026, too, I think it could be one of the best FTSE 250 value shares to consider.

17.9% annual returns

Georgia’s economy has faced challenges before. But over the long term, it’s delivered spectacular GDP growth that’s powered financial services demand, typically 5%-6% over the last decade.

As the country’s largest bank, TBC’s been in the box seat to exploit this opportunity. And it’s done so spectacularly, growing its share price 276% since it listed on the London stock market in August 2016 as profits have soared.

With dividends combined, the total shareholder return comes in at 392%, representing an average annual return of 17.9%. That’s more than three times the broader FTSE 250’s average yearly return of 5.2%.

A FTSE 250 dip buy?

Ultimately, I believe TBC Bank’s long-term outlook remains intact. And given the company’s super-low valuation today, I think it’s a top share to consider on the dip.

Net profits clocked in at roughly $531m last year, and TBC’s set a profit target of $1bn by 2030. Given its strong structural opportunities, it’s a goal I expect it to steadily move towards, driving the share price to new peaks.

The post 6% dividend yields and a P/E below 6! Here’s a FTSE 250 bargain share to consider appeared first on The Motley Fool UK.

The first number to nail down: how much capital do we actually need? 

If we’re targeting £10,000 a year from dividends, the answer depends on the yield we’re earning. At a 5% yield, we’d need a portfolio worth £200,000. At a 7% yield, that drops to around £143,000. 

Neither figure sounds trivial.

Of course, we don’t need to save £200,000 from scratch. We need to grow our portfolio — using a Stocks and Shares ISA and a largely underappreciated force: compounding.

Let’s run the numbers. An investor putting £400 a month into a Stocks and Shares ISA, earning an average 8% annual return, would have a pot worth approximately £235,000 after 20 years. That’s enough, at a 4.5% yield, to spin off £10,575 a year — a genuine second income, sheltered from tax.

The chart below shows how different monthly contributions stack up against the £200,000 threshold:

One aspect that jumps out immediately is the curve.

The first decade of investing can feel thankless. Contributions dominate and growth is modest. But somewhere around years 12 to 15, the compounding effect kicks in hard and the line bends sharply upward. That inflection point is everything.

It also explains why starting early beats saving hard. 

An investor contributing £300 per month from age 30 will typically outrun someone putting in £600 per month from age 40 — even though the late starter is doubling down. A decade of compounding is simply very difficult to replicate.

Where to invest?

But here’s something that trips up a lot of investors: building a second income portfolio doesn’t mean holding dividend-paying shares the whole time. During the accumulation phase — the years of growing the pot — many investors actually do better focusing on total return, holding high-growth shares that pay little or no dividend at all.

One stock that I find interesting from a growth perspective, while offering an outsized dividend, is TBC Bank (LSE:TBCG). The Georgian bank has compounded earnings per share at 34% annually since 2020 — yet trades on a forward PE of just 5.2 and has a price-to-earnings-to-growth (PEG) ratio of 0.4.

The forward dividend yield sits at nearly 7%, and that dividend has grown at over 40% a year over the same period, covered almost three times by earnings.

Return on equity of 23.8% and operating margins above 43% tell us that this bank is much more profitable than its UK focused peers. The market simply applies a steep discount for geography: TBC operates primarily in Georgia, and also in Uzbekistan, and that’s where the risk lives.

Specifically, Georgia remains an emerging market with real political volatility. Its proximity to Russia, the instability of the currency against sterling, and the potential for sudden capital flow disruption all mean that the headline numbers can deteriorate fast.

That said, I believe this is an investment worth considering. Georgia’s economy has been the fastest growing in Europe since the pandemic, and TBC still offers good value.

The post Here’s how to try and create a £10,000 second income portfolio appeared first on The Motley Fool UK.

For long-term investors with cash at the ready, market weakness might actually be an opportunity rather than a reason for caution. Here are two UK-listed names I think deserve a close look.

UK aerospace

Melrose (LSE:MRO) is absolutely worth paying closer attention to. Many investors may not even realise that it’s a FTSE 100 company.

Spun out as a pure-play aerospace components business, the company holds a sole-source position for 70% of the products it produces. That means customers simply can’t go elsewhere. It’s genuine pricing power.

The business is currently undergoing a transformation and cash flow has just turned positive — something management called an inflection point. EPS grew nearly 70% in 2025 and is forecast to grow a further 14% in 2026 and 23% in 2027 — yet the shares trade on just 12.4 times forward earnings with a price-to-earnings-to-growth ratio of 0.9.

It’s not just me however. The stock’s down 28% from its 52-week high, and the analyst consensus price target sits more than 40% above the current price.

A risk to flag is the balance sheet. Net debt stands at £1.74bn. That’s manageable while aerospace demand holds up, but it does mean Melrose has less room for error than some investors might like.

A Georgian bank

TBC Bank‘s (LSE:TBCG) even less well-known but arguably more interesting from a valuation standpoint. It’s a Georgian bank — a dominant retail lender in one of Europe’s fastest-growing economies — with expanding operations in Uzbekistan.

The headline numbers are super-strong. The forward price-to-earnings is just 4.9 times.There’s a PEG ratio of 0.4 and a dividend yield of 7.37%, backed by a cover of 2.76 times and growing at a compound annual rate of over 17%. Revenue’s grown at nearly 25% annually over recent years, and return on equity sits at 23.8%.

What’s more, TBC’s largely insulated from the risks that started impacting Western banks in February — concerns about AI-driven white-collar job losses, mortgage stress, falling consumer confidence. Georgia and Uzbekistan are growing economies driven by demographics and rising consumer spending rather than knowledge-economy employment.

As with every investment, there are risks. Geopolitical exposure in the Caucasus, proximity to a war zone, Georgian lari currency fluctuations, and relatively thin analyst coverage with only four brokers following the stock.

Personally, I think these are all baked into the price.

My take

Neither of these is a guaranteed winner — no stock ever is. However, they’re two quality companies currently trading at a discount to fair value. I think they’re both worth considering.

The post These 2 UK stocks look cheap ahead of the ISA deadline appeared first on The Motley Fool UK.

Here’s the thing about building a passive income stream from dividend stocks. The lower prices fall, the higher the yields go. And when those yields are reinvested (as any serious long-term investor should be doing), the magic of compounding starts to work in earnest.

A £500 annual dividend reinvested at a yield of 8% snowballs far faster than one reinvested at 5%. Over a decade or two, that gap becomes enormous. It’s not exciting or glamorous. It is however, remarkably powerful.

So while the headlines continue to scream about tariff wars and macro uncertainty, patient income investors might quietly be seeing a shopping window.

Taking a beating

Several high-quality dividend stocks have taken a notable beating since the trade war escalated, including mainstream names such as Standard Life and Legal & General. Both long-time stalwarts of the income investor’s playbook have drifted lower despite underlying businesses that remain fundamentally sound. That’s pushed their already-attractive yields even higher.

But it’s not just the household names worth examining. Lesser-known stocks, including TBC Bank (LSE:TBCG), Morgan Advanced Materials, and Bodycote, have also been caught in the crossfire, marked down in the broad sell-off despite dividend credentials that look compelling at current prices.

For example, TBC Bank’s down 15% since the war started in the Gulf. The forward dividend yield now sits at 6.9%. It’s a similar story at Morgan and Bodycote where the forward yields now sits at 5.7% and 3.8% respectively.

Could this be the moment to start building — or topping up — a portfolio designed to generate £1,000 a month in passive income? It might be. As billionaire investor Warren Buffett said: “Be fearful when others are greedy, and greedy when others are fearful”.

A deeper dive

TBC Bank remains one of my favourite opportunities in the current market. In the UK, I’ve been downsizing my positions in banks such as Lloyds and Barclays — and it was well-timed as they’re both well off their peaks. I think there’s also some AI-engendered credit risk here — white-collar job losses put pressure credit/mortgages etc.

However, there’s a degree of insulation from those risks in Georgia and Uzbekistan where TBC operates. Both economies are growing rapidly, driven by demographics and rising consumer spending rather than the kind of knowledge-economy jobs most vulnerable to automation. TBC’s also expanding its digital banking platform, Space, across the region — giving it a fintech growth angle that the market seems to be largely ignoring at current prices.

It’s also simply much cheaper than its peers in the UK, and even its main peer in Georgia. It trades at 5.3 times forward earnings and has a price-to-earnings-to–growth (PEG) ratio of 0.4. Coupled with a way-above average dividend yield, the valuation picture looks very compelling.

Risks? I’d be a fool not to admit that a prolonged Middle East conflict wouldn’t harm performance. Banks reflect the health of the local economy and Georgia’s geographical exposure to the conflict is obvious.

Nonetheless, I believe the undervaluation is compelling. It’s worth considering.

The post Stock market correction: time to create that £1,000-a-month passive income portfolio? appeared first on The Motley Fool UK.

Playing the long game

An important note before we get going is regarding the use of a Stocks and Shares ISA. Within the ISA, dividends received from stocks aren’t liable for dividend tax. As a result, the full gross payment can be retained. This is important because over time, this can really add up and make a big difference. The current ISA year ends on 5 April, with the new year starting, so the £20k subscription limit resets.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

When considering the portfolio’s size, the key consideration is the annual yield. Put simply, the higher the yield, the smaller the ISA needs to be. At the moment, the FTSE 100 average dividend yield is 3.19%. The FTSE 250 is slightly higher at 3.52%. Yet some companies included in these indexes don’t pay out any income at all.

So by being active and stripping out low- (or no-) yielders, I believe it’s possible to have a sustainable portfolio yielding 6%. With this figure, we can then calculate that the ISA needs to be worth £500k in order to pay out £2.5k on average each month. Given the ISA limit, if starting from scratch, this would take 15 years to build with gains reinvested. Even though some may be put off by the long wait, the income does start compounding quickly. For example, after five years of investing £20k a year and compounding, the ISA could be worth £140k, generating a very respectable £720 a month in the following year.

Of course, dividends aren’t guaranteed. That means it’s not ideal to make assumptions decades in advance.

Turning to finance

One example of a stock that could offer sustainable long-term income is TBC Bank Group (LSE:TBCG). The stock is down 8% in the past year with a dividend yield of 6.87%. The business has two attractive parts. One is a dominant Georgian bank, with the other being a fast-growing digital operation in Uzbekistan. It makes money mainly from net interest income (taking deposits and lending at higher rates) plus fees from cards, payments and other services.

The dividend looks sustainable because the group is highly profitable and follows a sensible payout policy. That matters. A bank can only keep rewarding shareholders if it has enough earnings and capital left after growth. The company has both, and I don’t see this under threat any time soon.

I have a positive outlook for the firm, mainly stemming from continued growth in Georgia, which is becoming a cash cow. Then Uzbekistan adds the real juice, especially if the uptake in digital banking keeps going.

There are risks, of course. Georgia is still an emerging market, so economic or political shocks could hurt performance. Credit losses could rise if conditions worsen, and expansion in Uzbekistan might not go to plan.

Even with those concerns, I believe it looks like a solid dividend stock for investors to consider.

The post How big does my ISA need to be to make £2.5k in monthly passive income? appeared first on The Motley Fool UK.

Investors don’t need to actually buy shares to beat that deadline. Just depositing cash before 6 April is enough to secure this tax year’s allocation. But is there any reason to wait before buying dividend shares? Probably not, in my view, as the London stock market’s packed with high-yield shares and brilliant dividend growers right now.

What’s more, a lot of these income stocks currently trade at rock-bottom prices. Want to see two of my favourites?

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice. Readers are responsible for carrying out their own due diligence and for obtaining professional advice before making any investment decisions.

Growth and yield

I don’t have any spare cash to invest right now. But when I do, I’ll consider adding TBC Bank Group (LSE:TBCG) shares to my own portfolio.

Dividends have soared in the post-pandemic period, and in 2025 the bank lifted the total dividend 10% year on year. City analysts expect them to keep growing over the medium term, leaving a brilliant 6.2% dividend yield for 2026.

Dividends are never guaranteed, but I’m confident the Georgian bank can keep delivering enormous and rising cash rewards. It has gigantic capital reserves — its CET1 ratio clocked in at 18.9% as of December. What’s more, this year’s predicted dividend is covered 2.7 times by anticipated earnings.

This provides a margin of error if, say, economic conditions worsen and customer loans decline. This may affect TBC’s share price, but I’d still expect dividends to keep growing strongly. And over the long term, I expect earnings to surge as Georgia’s economy rapidly expands, driving the domestic financial services industry. Pre-tax profit jumped 21.7% last year.

At £43.85, TBC shares trade on a forward price-to-earnings (P/E) ratio of just 5.9 times.

8%+ dividend yield

Alternative Income REIT (LSE:AIRE) is another high-yield hero that I think deserves attention from value investors. Its dividend yield for 2026 sits at 8.3 times, and its dividend yield at 8.2%.

Like other property stocks, this real estate investment trust (REIT) has sunk in recent weeks. It’s fallen as soaring oil prices have raised inflationary expectations, and reduced hopes of interest rate cuts. Higher central bank borrowing rates can put considerable strain on asset values.

A prolonged Middle East conflict could cause further share price weakness. But will this impact Alternative Income’s dividends? I’m confident it won’t. Under REIT rules, at least 90% of the trust’s annual rental profits must be paid out to shareholders. That’s in exchange for juicy tax breaks.

Dividends could still suffer, though, if higher interest rates hit economic growth. However, this REIT’s diversified portfolio greatly reduces the danger of rent collection and occupancy issues that could hammer dividends — its properties include hospitals, petrol stations, care homes, and retail parks.

Tenants are also tied to long contracts, providing added earnings (and thus dividend) visibility. This is another great dividend share to consider for the long term.

The post 2 dirt-cheap dividend shares to consider this ISA season! appeared first on The Motley Fool UK.

JD Sports Fashion (LSE:JD.), Grainger (LSE:GRI) and TBC Bank (LSE:TBCG) are three that have caught my eye this month. Each comes with an ultra-low price-to-earnings (P/E) ratio. But that’s not all that makes them great value stocks to consider buying.

Here’s why they could be too cheap for investors to ignore.

Fashion and sports star

Retailers like JD Sports face severe challenges as surging oil prices fuel inflationary pressures. But could this be baked into this FTSE 100 share’s current valuation? I think so. Fresh share price weakness leaves the sportswear giant on a forward P/E ratio of 6.5 times.

The good news for JD is key brands like Nike and Adidas are regaining popularity with consumers, latest financials show. Collectively, these top-tier brands make up the lion’s share of company sales. Even if shopper spending power becomes more constrained, their excellent brand power could support strong sales at the retailer.

Longer term, I’m optimistic JD’s profits could soar from today’s levels as global store expansion rolls on. Recent price weakness represents a new dip opportunity to consider.

Top trust

Grainger is one of the most attractive dividend stocks on offer today, in my view. Like all real estate investment trusts (REITs), it has to pay 90% or more of its rental profits out in cash to investors.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

That’s not all. It’s Britain’s largest listed operator in that most defensive of sectors: residential property. So even if economic conditions worsen and inflation bursts higher, rental income should remain broadly stable.

Higher interest rates will likely hit its share price by raising borrowing costs. This could also weigh on its growth prospects by making new housing developments prohibitively expensive. However, those REIT rules mean Grainger should still be a reliable and generous dividend growth stock.

City analysts agree, meaning a huge dividend yield of 5.1% for this financial year (to September 2025). A forward P/E ratio of 8.9 times provides an extra sweetener for value investors.

The best bank?

TBC Bank is one of the hottest growth stocks out there, in my view. Unlike Lloyds, for instance, which operates in a very mature market, this FTSE 250 bank operates in the fertile Georgian marketplace. This is one that offers the stunning combination of low product penetration and surging demand as the local economy booms.

Like other banking stocks, TBC also stands to gain from more favourable interest rates that’ll boost margins. Rising inflationary pressures are feeding expectations that central banks will stop cutting — or perhaps even hike — their lending rates.

I don’t think these factors are reflected in TBC’s low forward P/E ratio of 5.6 times. Growth could be impacted if the National Bank of Georgia raises rates, hurting the domestic economy. But I think the bank’s challenges are more than baked into that low earnings multiple.

One final thing: the dividend here for 2026 is a gigantic 6.5%.

The post These 3 FTSE 100 and FTSE 250 stocks are now dirt cheap! appeared first on The Motley Fool UK.

For the most part, it comes down to individual risk tolerance and sector familiarity. Personally, I find a diversified selection to be the best approach: harnessing high yields while limiting risk with defensive options.

But what makes a ‘good’ dividend stock?

Not all dividends are equal

Some companies pay a high yield for a year or two and then cut it when times get tough, which is the last thing you want if you’re relying on that income.

Usually, more sustainable dividends have three things going for them: a decent payment history, strong cash generation, and a sensible payout ratio (they’re not paying out almost everything they earn).

That combination gives the company room to keep paying — and hopefully growing — the dividend, even when the economy hits a rough patch.

Recently, I identified a promising FTSE 250 dividend stock that does a decent job of meeting these criteria.

A foreign financial powerhouse

TBC Bank Group‘s (LSE: TBCG) a lesser-known Georgian bank listed on the London Stock Exchange (LSE).

Immediately, this raises some eyebrows: foreign unfamiliarity, currency exchange risk and geopolitical uncertainty. But the bank’s numbers are undeniable: a 10-year total return of 557%, equating to almost 21% a year on average.

Comparatively, the FTSE 100 has returned roughly 9% a year on average over the long term when you include dividends. So a £3,000 investment 10 years ago would have netted the lucky investor almost £20,000 by now (with dividends reinvested). And with the current yield hovering around 6%, that would pay out £1,200 a year in dividends.

Ok, great stuff. But were the past 10 years a once-off fluke, or can the bank keep delivering?

A solid business with obvious risk

TBC’s one of the biggest banks in Georgia, with growing operations in Uzbekistan, and it’s been expanding quickly as those economies develop.

But due to its location, political or economic shocks there could hit profits and the share price more sharply than a big developed‑market bank. And as with all banks, if interest rates or bad debts move the wrong way, earnings and dividends can come under pressure.

Still, its recent results are strong.

In 2025, it reported record net income of about £387m, up from £369m in 2024. It boasts an impressive return on equity (ROE) of 23.6%, far higher than most UK high street banks.

Its loan book grew by about 17% over the year, and deposits rose too, showing it’s still winning customers and growing its balance sheet.

Crucially for dividend hunters, the bank’s capital ratios are strong and comfortably above regulatory minimums, which gives it room to keep rewarding shareholders while still funding growth.

The bottom line

For a UK investor chasing passive income, TBC Bank offers an interesting mix of strong profit growth, high ROE and a well‑covered dividend.

It’s not a low‑risk choice — emerging‑market banks never are — but as part of a diversified portfolio, it’s a compelling candidate to consider.

The post £3,000 buys 64 shares in this passive income gem that’s returned 21% a year for the past 10 years appeared first on The Motley Fool UK.

Here are three UK income stocks that I reckon deserve a place on investors’ radars today.

TBC

Let’s start with probably the most obscure: TBC Bank (LSE:TBCG). This is one of two dominant banks in Georgia on the edge of Europe. Both are listed in the FTSE 250, though rival Lion Finance (formerly the Bank of Georgia) will join the FTSE 100 later this month 

This shows how well these bank stocks have done, with TBC up nearly 300% in five years, with dividends on top. However, despite this impressive rise, the forecast dividend yield is a juicy 6.6% (almost double the FTSE 250).

The dividend prospects look strong to me, with the Georgian economy tipped to grow very strongly in the coming years. This is due to booming tourism and Georgia’s position as a logistics and trade hub between Europe and Asia.

Naturally, this growth is dependant on Georgia’s economy and global trade remaining buoyant. If there’s an economic downturn, the bank’s share price would reflect that.

However, TBC remains one of the most profitable lenders in Europe, and its digital bank in Uzbekistan is growing quickly.

Londonmetric

Next, we have Londonmetric Property (LSE:LMP), which is a very different proposition. It’s a real estate investment trust (REIT) from the FTSE 100 with a £7.4bn portfolio across 680 assets.

These are focused on urban logistics, convenience, healthcare, and leisure and entertainment. So respective tenants in these areas include Amazon, Aldi, private hospital operator Ramsay Health Care, and Premier Inn.

Now, the big risk here is that REITs like Londonmetric are sensitive to changes in interest rates. And with the Iran conflict spilling out into the Middle East and causing chaos in energy markets, inflation could spike and prevent rates from heading lower.

This is reflected in the share price, which has dipped 6% in recent days. However, the silver lining is that this has pushed the forecast dividend yield up to 6.4%.

With this level of income on offer, I think the stock looks attractive right now. Londonmetric’s occupancy rate is just above 98%.

Please note that tax treatment depends on the individual circumstances of each client and may be subject to change in future. The content in this article is provided for information purposes only. It is not intended to be, neither does it constitute, any form of tax advice.

Aviva

Last but not least, there’s Aviva (LSE:AV.). This week, the insurance giant delivered a cracking set of results for 2025 — it’s fifth straight year of strongly growing profits.

Operating profit jumped 25% to £2.2bn, with general premiums up by 18%. This smashed its original £2bn operating profit target one year early!

CEO Amanda Blanc said: “[T]here is so much more to come. Aviva has many in-built advantages which set us up well for future success, including our unrivalled scale with almost 22m UK customers, our diversified model and market-leading technology.”

The final dividend was hiked 10% and a £350 share buyback programme has commenced.

Despite this impressive showing, the stock is down 8% in the past week. This puts the forecast dividend yield at an alluring 6.5%, one of the highest in the FTSE 100.

Aviva is not risk-free, as a return of inflationary pressures could dampen demand for its insurance products. But I see this dip as an excellent buying opportunity to consider for passive income.

The post 3 top passive income stocks with yields above 5% to consider for a SIPP appeared first on The Motley Fool UK.